You have probably seen the ads from auto insurance companies like Liberty Mutual and The General that claim dirt cheap rates. So drivers should just choose the one with the flashiest ad, right?
It's not that simple, unfortunately, as there are a whole bunch of unknowns like if you are a homeowner, how experienced of a driver you are, and the miles you drive each year, that all impact the cost of coverage. In this article, we will cover the things that influence insurance rates and will hopefully give you a good start in finding the cheapest insurance for college students.
One of the many criteria that aid in calculating the price you pay for insurance is where you live in Indiana. Areas with more people or more claims like Gary, Merrillville, and Indianapolis tend to pay more, whereas areas with less crime or weather claims receive better rates.
The illustration below sorts the highest-priced places in Indiana for college students to purchase car insurance in.
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Information shown are estimated as vehicle location can affect rates substantially.
The make and model of vehicle to be insured is one of the largest factors that determines whether or not you find cheaper car insurance for college students. Vehicles with limited top-end speed, advanced safety features, or low incidents of liability claims will cost less to insure than fast, unsafe models. The table below showcases car insurance prices for a handful of the most cost-effective automobiles to insure.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$1,440|
|Honda CR-V LX 2WD||$1,446|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,581|
|Ford F-150 XL Super Cab 4WD||$1,603|
|Ford Explorer XLT AWD||$1,612|
|Ford Focus S 4-Dr Sedan||$1,687|
|Ford Edge SEL 2WD||$1,693|
|Toyota RAV4 Limited 4WD||$1,709|
|Chevrolet Impala LT||$1,715|
|Jeep Grand Cherokee Laredo 2WD||$1,709|
|Chevrolet Equinox LS 2WD||$1,719|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$1,730|
|Chevrolet Malibu LT||$1,737|
|Dodge Grand Caravan SXT||$1,730|
|Honda Odyssey EX-L||$1,816|
|Toyota Corolla XLE||$1,821|
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Price data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in specific location information which can affect auto insurance rates noticeably.
Based upon the rates shown, you can assume that cars like the Ford Escape, Honda CR-V, and Jeep Wrangler are the more affordable vehicles to insure for students in college. The price of auto insurance will tend to be more expensive anyway because there is more risk for college students, but generally speaking those models will tend to have the lowest insurance prices that you'll find.
The chart below illustrates how your choice of deductibles can increase or decrease insurance premiums when searching for cheap insurance for college students in Indiana. The premiums are based on a single female driver, full coverage, and no other discounts are factored in.
The chart above illustrates that a 30-year-old driver could lower their car insurance rates by $344 a year by increasing from a $100 deductible to a $500 deductible, or save $516 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old category, could drop their prices as much as $772 or more just by choosing higher deductibles.
When increasing deductibles, it's a good idea to have enough savings set aside to satisfy the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Types of discounts on Indiana auto insurance rates
Car insurance companies that provide policies for college students may also give you special discounts that could lower prices by as much as 40% or more if you are eligible to receive them. A list of companies and their possible discounts are outlined below.
- GEICO offers discounts including membership and employees, emergency military deployment, multi-vehicle, multi-policy, and driver training.
- Travelers discounts include student away at school, new car, save driver, multi-car, and good student.
- Nationwide includes discounts for business or organization, multi-policy, easy pay, family plan, and Farm Bureau membership.
- Farmers Insurance offers discounts for mature driver, early shopping, alternative fuel, electronic funds transfer, business and professional, switch companies, and multi-car.
- Esurance may offer discounts for defensive driver, multi-car, anti-lock brakes, anti-theft, and Switch & Save.
- State Farm may have discounts that include multiple autos, accident-free, passive restraint, Drive Safe & Save, student away at school, good student, and anti-theft.
- Progressive has discounts for continuous coverage, good student, online signing, multi-policy, multi-vehicle, and homeowner.
- Mercury Insurance may include discounts for professional/association, location of vehicle, age of vehicle, low natural disaster claims, and good driver.
The chart below illustrates the comparison of auto insurance rates with and without discounts applied to the premium. The premium estimates are based on a female driver, no tickets, no at-fault accidents, Indiana state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with good student, vehicle safety, anti-theft, paid-in-full, passive restraint, and paperless filing discounts applied. With discounts applied, the the amount saved on car insurance for college students is 21% or $266.
How to find budget-friendly auto insurance for college students
Here are many money-saving ideas that can help drivers locate more affordable coverage.
- Improve your credit score
- Avoid having at-fault accidents
- Do not pay for full coverage on older vehicles
- Drive a car with a high safety rating
- Higher deductibles save money
- You will pay more if you get tickets or have at-fault accidents
- Shop around and save
That last idea is remarkably necessary, as was noted in this write-up. Prices charged by car insurance companies can change considerably in a year, so drivers shouldn't be resistant to buy from a new company if a lower-cost policy is available.
Brand loyalty is great, but it isn't a good idea if that faithfulness ends up costing you major coinage every year. Spend a few minutes and shop around to find cheaper car insurance for college students.